The monthly ZEW forecast for Germany has reached -3.6 points compared to 6.9 points the previous month, reaching a negative level of for the first time in two years.
Meanwhile, the assessment of the current economic situation in Germany declined by -22.2 to +3.2 points while the assessment of the current situation in the eurozone overall is now at -56.8 points.
The overall economic expectations for the eurozone alsodropped but remained at +4,1 points, suggesting that respondents anticipate eurozone recession may reach its trough.
“ZEW financial experts anticipate a further deterioration of economic conditions in Germany in the medium term. Geopolitical tensions and the economic recovery in parts of the Eurozone lagging behind expectations continue to cause uncertainty and have a negative effect on growth prospects in Germany” comments ZEW president Clemens Fuest.
“In addition the recent disappointing economic figures including incoming orders, industrial production and export have increased pessimism among financial experts” he says.
The October ZEW survey has been conducted among 223 analysts and institutional investors in Germany.